Trump threatens to cut General Motors subsidies as carmaker axes jobs

Trump threatens to cut General Motors subsidies as carmaker axes jobs

Mr Trump unleashed the comments on Twitter a day after GM announced it would close down five vehicle factories and slash 14,000 jobs in North America, with numerous job cuts coming from the Midwest, where the President has promised a rebirth of manufacturing.

General Motors said on Monday it will cut production of slow-selling models and slash its North American workforce because of a declining market for traditional gas-powered sedans, shifting more investment to electric and autonomous vehicles. GM stock declined by over three percent after Mr. Trump's tweet was posted. "It's not going to be closed for long, I hope, Mary, because if it is you have a problem".

"The president is very cross with her and of course I transmitted that", National Economic Council director Larry Kudlow told reporters on Tuesday.

GM announced Monday that it will cut as many as 14,000 workers in North America and put five plants up for possible closure. The company has sold about 22,000 through September and in August sought an exclusion from 25 percent US tariffs imposed on Chinese vehicle imports.

"Today our generation is facing a new Black Monday in the Mahoning Valley", Congressman Ryan said, "GM's announcement is devastating for the men and women working at Lordstown and everyone here in the Mahoning Valley".

At the factories, around 3,300 blue-collar workers could lose jobs in Canada and another 2,600 in the US, but some USA workers could transfer to truck or SUV factories that are increasing production.

GM now builds just one vehicle in China that it exports to the United States - the Buick Envision. "After years and years of sending our jobs and wealth to other countries, we are finally standing up for our workers and for our companies".

GM has announced that it will be closing five North American plants by the end of 2019, which will include the assembly facility in Detroit, Ohio and Ontario, Canada, as well as transmission factories in MI and Maryland.

GM's broad restructuring, just weeks removed from reporting surprisingly strong profit, is a move reminiscent of what Ford did in 2006, two years before a worldwide credit crunch sent GM and Chrysler into Chapter 11.

Also on Tuesday, Trump said he may try to eliminate electric vehicle subsidies for GM. GM's major commodity costs are steel and aluminum, both of which have climbed in price in response to Trump's tariffs.

The Cadillac and Buick models will continue to be built in China, casting doubt over the future of the Chevy models, while there is no word yet on whether GM will maintain the affected North American facilities to produce different models. "This industry is changing very rapidly". Current Gov. John Kasich said the state would set up a jobs center to help employees find new work.

GM opened the Lordstown plant in the late 1960s in the southwest corner of Trumbull County.

The automaker said it was ending Chevrolet Volt production because the vehicle was meant to be a bridge to fully electric cars when it was introduced about a decade ago.

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